Resistance at higher levels

Weekly Technical Analysis

The NSE index, Nifty, opened with a bang and wasted no time in rallying to a life-time high. The index went on to scale a fresh high on the first three trading days of the week with a peak at 4,291. Profit taking started thereafter and the index dropped to a low of 4,141 - a loss of 150 points from the high.

A smart recovery from the lower levels saw the Nifty bounce back and end with a gain of 34 points at 4,248.

The BSE index, Sensex, touched a high of 14,501, before slipping to 14,046 - an intra-week range of 455 points. The index finally ended with a marginal gain of 35 points at 14,338.

Last week's high are now going to be the immediate resistance levels for the indices. The Nifty is likely to face stiff resistance around 4,290, with further resistance at 4,315. On the downside, the index may seek support 4,150 level.

The Sensex is likely to face resistance around 14,500, and further up at 14,620. On the downside, the index is likely to find support around 14,050, a break of which could see the index drop to 13,900.

Among stocks, Infosys last week took support at its recent low of Rs 1,911, and bounced back strongly to close at Rs 1,986. This week, the stock may attempt to rally to Rs 2,050, while the stock may find support around Rs 1,950. However, a break of Rs 1,910, could see the stock drop to Rs 1,830.

ITC is likely to trade with a positive bias with an upside target of Rs 175. In case of a down move, strong support for the stock exists at Rs 160.

Reliance has been trading at new highs in recent times and the stock is likely to continue the bull run. The stock has strong support at Rs 1,680, while it may face some resistance around Rs 1,780. The overall, bullishness in the stock may come in danger only if the stock drops below Rs 1,500.